Global soya oil prices surge to a record high as Indonesia bans palm oil exports

Soybean oil prices have soared to a record high on Indonesia’s decision to effectively ban exports of palm oil. The loss of shipments from Ukraine, the world’s top supplier of sunflower oil, and drought in the world’s top soybean oil exporter Argentina had already sparked a sharp rise in global vegetable oil prices. The tightening vegetable oil supplies come as easing COVID-19 restrictions have sparked a surge in demand for food and biofuels. While oilseed crushers have announced plans to expand processing capacity, most of the new facilities will not be online for at least a year, industry sources said. Indonesia, the world’s top producer and exporter of palm oil, blocked exports from April 28 to tackle rising domestic prices. The move looks set to fuel already surging food inflation elsewhere. Food inflation has become a major concern around the globe following Russia’s invasion of Ukraine, a major exporter of wheat, corn, barley, sunflower oil and rapeseed oil. The United ...